'Here are the best European titles'
"The most attractive companies are Prysmian, Asml and Sap. Also of interest are Howdens, a British kitchen manufacturer, and, among luxury brands, Lvmh'
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Key points
3' min read
There will be no major changes of course in the financial markets in the coming months. The US uncertainty will remain for a while yet because the elections are still some way off, while from an operational point of view it makes sense to look carefully at the European market, especially in the large cap segment. Ann Steele, manager of Columbia Threadneedle Investments, explains this in detail
After the elections in the UK and France do you think it is likely to expect a change in the European stock market scenario in the coming months?
The Labour victory in the UK was not a cause for concern for markets, as the incoming government had already signed up to the fiscal rules currently in place. We therefore do not expect any significant impact on growth prospects, but we do expect investors to react well to the new political stability, with a possible revaluation of UK equities currently at a discount. The elections in France, on the other hand, generated a shock in European markets after the first round, which faded once it became clear that the far-right would not win an absolute majority. However, until the negotiations for the new government are concluded, the risk premium for French equities will be higher, which the markets have already priced in.
Are you planning to change your wallets in the run-up to the US elections, and especially after the assassination attempt on Donald Trump?
Not at the moment. The tragic attack on the former US president itself has no direct impact on our investment strategies, but is part of the market volatility of election periods.
Which sectors are you most exposed to at the moment?
.We are currently overweight in industrials, consumption, discretionary goods, technology and communications, and underweight in consumer staples, real estate, energy, healthcare and utilities.
And what kind of advice would you give to those who want to take exposure to the European stock markets today?
Pay attention to stock picking in your portfolio because as interest rates fall and inflation moderates, markets will start to widen and this will prove to be an advantage in stock picking across all market segments.
